If you’re going to buy a house later this year, you want to increase your knowledge about mortgages and how they work. You want to know what to do when you’re trying to look for the best mortgage, before you apply for a plan, the things you should take a close look throughout the process, and about how you should use a mortgage after you bought your house.
In this blog, GS Mann, the best commercial real estate brokers Calgary, is going to list down things you should know before you get a mortgage.
5 Things to Know Before You Get a Mortgage
- Your Credit Score
In order to be qualified for a good mortgage, you need to have a good credit score, or else your plan would end up being pretty expensive. Remember, mortgage involves a lot of money, and the bank or lender needs some assurance that you can repay the loan, hence, you need a good credit score ahead of purchasing a house.
- Your Budget
Before you head out and buy a mortgage that would fit perfectly in your current situation, you need to make sure that you’re within the budget. Mortgage lenders want to assure that you’re not borrowing too much money. This is the reason why they look at your income for the past couple of years and credit score.
- Aim Safe
When you’re trying to buy a mortgage, you want to aim safe. This means you want to go for a fixed rate mortgage, which is usually anywhere from 25 to 30 years. This type of mortgage is the best if you’re planning to stay in the house for more than 10 years.
- Down Payments
To have a good mortgage rate, you want to have at least 10 to 20 percent of the total value of the mortgage paid. Paying a good amount of mortgage will reduce your monthly payable ‘s and will remove a lot of stress from your mind.
Sometimes, you end up getting a better mortgage after you purchased your mortgage, and that’s why you want to take a look at the refinancing methods that you have in front of you. Refinancing a mortgage is a good way to save some money when you find a good mortgage after buying a mortgage from the best commercial mortgage broker Calgary in your city.